Credit Goodwill Agreement
This Credit Goodwill Agreement (Agreement) is entered into and agreeing upon by and between [Party A], of [Address A], hereinafter referred to as the Client, and [Party B], of [Address B], hereinafter referred to as the Creditor. The Client and the Creditor hereinafter referred to as the Parties.
RECITALS
WHEREAS, the Client is desirous of obtaining a loan from the Creditor and has requested the Creditor to extend such loan; and
WHEREAS, the Creditor has agreed to extend the loan to the Client in the principal amount of [Amount of Loan], upon the express conditions that the Client shall demonstrate good credit reputation over the term of the loan;
NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Parties hereto do hereby agree as follows:
I. LOAN
1.1 Effective as of the date hereof, the Creditor shall loan the sum of [Amount of Loan] to the Client. The Creditor hereby agrees to extend such loan upon the condition that the Client shall satisfactorily demonstrate good credit reputation over the term of the loan.
II. TERMS OF LOAN
2.1 The principal and interest of the loan shall be payable in full on a monthly basis and [Details of Loan].
2.2 If the payment of the loan is overdue by more than [X] days, t he Creditor shall have the right to demand that the loan be paid in full immediately.
III. CREDIT STANDING
3.1 The Client agrees to maintain a good credit standing over the term of the loan, as reasonably determined by the Creditor. The Client agrees to submit to the Creditor, on a monthly basis, a current credit report. The Client agrees to notify the Creditor of any material changes in their credit standing.
3.2 Upon request by the Creditor, the Client agrees to submit further proof of credit standing, such as copies of current credit reports and other information requested by the Creditor.
IV. REPRESENTATIONS AND WARRANTIES
4.1 The Client hereby represents and warrants that:
(a) All information provided to the Creditor concerning the Clients credit standing is true and correct;
(b) The Client is and shall remain capable of performing the obligations hereunder;
(c) The Client has the legal power and authority to enter into, execute and deliver this Agreement and to perform its obligations herein; and
(d) This Agreement is a legal, valid and binding agreement of the Client, enforceable in accordance with its terms and conditions.
V. DEFAULT
5.1 The following shall be deemed a Default hereunder:
(a) The Client fails to repay any principal or interest due under the terms of the loan or according to this Agreement;
(b) The Client fails to maintain good credit standing in accordance with Section III thereof;
(c) The failure of the Client to comply with any other obligation of the Client under this Agreement; or
(d) The Client is or becomes bankrupt or insolvent.
VI. REMEDIES UPON DEFAULT
6.1 In the event of a Default hereunder, the Creditor may, at its option and discretion, immediately demand payment of the principal and all accrued interest due at such time on the loan; and/or
6.2 The Creditor shall be entitled to seek damages in the amount of the principal and all accrued interest due at such time on the loan; and/or
6.3 The Creditor may pursue any other available remedy in order to enforce the terms and conditions of this Agreement.
VII. GOVERNING LAW
7.1 This Agreement shall be governed by and construed in accordance with the laws of [Jurisdiction], without giving effect to any choice of law or conflict of law rules or provisions that would cause the laws of any jurisdiction other than [Jurisdiction] to be applicable.
VIII. COUNTERPARTS
8.1 This Agreement may be executed in several counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be signed this [Day] day of [Month], [Year].
[Party A]
[Party B]
